Oxford Immunotec Reports Second Quarter 2017 Financial Results
(Thomson Reuters ONE) -
* Second quarter revenue of $26.1 million, an increase of 36% compared to
prior year period
* Continued growth from both the Tuberculosis and Tick-borne disease
franchises
* Successful negotiation of a settlement with Statens Serum Institut which
will result in substantial future gross margin improvement
* Raising revenue guidance for the full year from $102-$105 million to $103-
$106 million
OXFORD, United Kingdom and MARLBOROUGH, Mass., Aug. 01, 2017 (GLOBE NEWSWIRE) --
Oxford Immunotec Global PLC (Nasdaq:OXFD), a global, high-growth diagnostics
company focused on developing and commercializing proprietary tests for the
management of underserved immune-regulated conditions, today announced second
quarter 2017 financial results.
"We delivered a strong second quarter with revenue growth that exceeded the top
end of our guidance range," said Dr. Peter Wrighton-Smith, Chief Executive
Officer of Oxford Immunotec. "As we continue our evolution from a single-product
company to a multi-product company, we are pleased to see solid growth in our
core tuberculosis (TB) business as well as a strong contribution from our
accelerating tick-borne disease franchise."
By revenue type, total revenues were, in millions:
Three Months Ended June 30,
----------------------------------------------
Percent
2017 2016 Change
-------------- -------------- ------------
Product $ 10.4 $ 9.3 12 %
Service 15.7 9.9 59 %
-------------- --------------
Total Revenue $ 26.1 $ 19.2 36 %
-------------- --------------
By indication, total revenues were, in millions:
Three Months Ended June 30,
-----------------------------------
Percent
2017 2016 Change
----------- ---------- ------------
Tuberculosis $ 21.3 $ 19.2 12 %
Tick-Borne Disease and Other 4.8 - NM
----------- ----------
Total Revenue $ 26.1 $ 19.2 36 %
----------- ----------
By geography, total revenues were, in millions:
Three Months Ended June 30,
------------------------------------------------
Percent Change
--------------------- --------------------------
As Constant
2017 2016 Reported Currency (1)
---------- ---------- ----------- --------------
United States $ 16.1 $ 9.8 65 % 65 %
Europe & ROW 1.9 2.0 -2 % 3 %
Asia 8.1 7.4 9 % 8 %
---------- ----------
Total revenue $ 26.1 $ 19.2 36 % 36 %
---------- ----------
((1) )Changes in revenue include the impact of changes in foreign currency
exchange rates. We use the non-GAAP financial measure "constant currency basis"
in our filings to show changes in our revenue without giving effect to period-
to-period currency fluctuations. We consider the use of a period over period
revenue comparison on a constant currency basis to be helpful to investors, as
it provides a revenue growth measure free of positive or negative volatility due
to currency fluctuations.
Settlement with Statens Serum Institut
During the quarter, we reached a settlement over a dispute regarding our license
agreement with Statens Serum Institut (SSI). The terms of the settlement are
confidential, however, we expect this settlement to result in a 300-400 basis
point improvement in future TB gross margins.
Second Quarter 2017 Financial Results
Revenue for the second quarter of 2017 was $26.1 million, representing 36%
growth over second quarter 2016 revenue of $19.2 million. On a constant currency
basis, revenue growth was also 36% versus the prior year period. Tuberculosis
revenue for the second quarter of $21.3 million increased 12% over the prior
year period.
2017 second quarter product revenue was $10.4 million, representing a 12%
increase from product revenue of $9.3 million in the second quarter of 2016. The
increase was primarily driven by sales of tick-borne disease kits as well as
growth in Asia. Service revenue for the second quarter of 2017 was $15.7
million, up 59% from 2016 second quarter revenue of $9.9 million. The increase
in service revenue was primarily driven by tuberculosis volume increases in the
United States as well as revenues from our tick-borne disease testing business.
United States revenue was $16.1 million in the second quarter of 2017,
representing 65% growth over revenue of $9.8 million in the prior year period.
The increase was due to growth in our core tuberculosis business as well as the
additional contribution from our tick-borne disease business.
Europe & ROW revenue was $1.9 million in the second quarter of 2017,
representing a 2% decrease compared to the second quarter of 2016. On a constant
currency basis, Europe & ROW increased 3% versus the second quarter of 2016. The
increase was primarily due to TB growth, particularly in the UK, and sales of
tick-borne disease kits.
Asia revenue was $8.1 million in the second quarter of 2017, representing an
increase of 9% over 2016 second quarter revenue of $7.4 million. On a constant
currency basis, Asia increased 8% versus the second quarter of 2016. The
increase was due to the timing of orders in China and increasing sales in South
Korea.
Gross profit for the second quarter of 2017 was $13.6 million, an increase
of $3.1 million over gross profit of $10.5 million in the same period of 2016.
Gross margin was 52.2%, a decrease of 290 basis points from the gross margin of
55.1% in the second quarter of 2016. The second quarter gross margin performance
reflects an underlying improvement in TB margins offset by the addition of our
tick-borne disease businesses, which carry lower gross margins.
Operating expenses were $31.4 million in the second quarter of 2017, an increase
of $13.5 million compared to $17.9 million in the same period last year. The
increase in operating expenses was largely due to the inclusion of a one-time
charge related to the SSI settlement as well as expenses related to our BLA
submissions and ongoing patent litigation.
Net loss for the second quarter of 2017 was $16.8 million, or $0.74 per share,
compared to $6.4 million, or $0.29 per share, in the second quarter of 2016. Net
loss per share was based on 22,805,379 and 22,351,645 weighted average ordinary
shares outstanding for the second quarters of 2017 and 2016, respectively.
EBITDA for the second quarter was $(17.4) million compared to $(5.8) million in
the second quarter of 2016. Adjusted EBITDA was $(6.3) million for the second
quarter compared to $(5.3) million in the same period in 2016. Both EBITDA and
Adjusted EBITDA are non-GAAP measures.
Business Outlook
We expect to report revenue of between $29.5 and $30.5 million for the third
quarter of 2017.
We now expect to report full year 2017 revenue of between $103 and $106 million,
representing 20% - 23% year-over-year growth. We expect revenue to increase
approximately 21% to 24% for the year using constant exchange rates. This
compares to prior revenue guidance of between $102 and $105 million.
Conference Call
Oxford Immunotec will host a conference call on Tuesday, August 1, 2017 at 8:00
a.m. Eastern Time to discuss its second quarter 2017 financial results. The call
will be concurrently webcast. To listen to the conference call on your
telephone, please dial (855) 363-5047 for United States callers and +1 (484)
365-2897 for international callers and reference confirmation code 54321779
approximately ten minutes prior to start time. To access the live audio webcast
or subsequent archived recording, visit the Investor Relations section of Oxford
Immunotec's website at www.oxfordimmunotec.com. The replay will be available on
the Company's website for approximately 60 days.
About Oxford Immunotec
Oxford Immunotec Global PLC is a global, high-growth diagnostics company focused
on developing and commercializing proprietary tests for the management of
underserved immune-regulated conditions. The Company's first product is the T-
SPOT(®).TB test, which is used to test for tuberculosis infection. The T-
SPOT.TB test has been approved for sale in over 50 countries, including the
United States, where it has received pre-market approval from the Food and Drug
Administration, Europe, where it has obtained a CE mark, as well as Japan and
China. The Company's second product line is a range of assays for tick-borne
diseases, such as Lyme disease, obtained through the acquisitions of Imugen and
Immunetics. Also obtained through the acquisitions is the Company's third
product line focused on screening for Babesia in donated blood, for which the
Company is currently seeking FDA licensure. The T-SPOT.CMV test and the T-
SPOT.PRT test are pipeline products as part of the Company's fourth intended
product line focused on the transplantation market. In addition to these four
product lines, the Company has additional active development programs in other
immune-regulated conditions. The Company is headquartered near Oxford, U.K. and
in Marlborough, Mass. Additional information can be found
at www.oxfordimmunotec.com.
T-SPOT and the Oxford Immunotec logo are trademarks of Oxford Immunotec Ltd.
Immunetics is a trademark of Immunetics, Inc.
Forward-Looking Statements
This release contains forward-looking statements that involve risks and
uncertainties, including statements about our anticipated plans, objectives,
intentions, the anticipated benefits of the transaction, the effects of the
transaction, including effects on future financial and operating results,
prospects for sales of our products and other statements that are not historical
facts. The forward-looking statements in this release are based on current
expectations, assumptions and data available as of the date of this release and
are subject to known and unknown risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by such statements,
including but not limited to: risks related to disruption of management time
from ongoing business operations due to the integration of Imugen and Immunetics
into the Company; the risk that the Company may fail to realize the benefits
expected from the acquisitions; the risk that the integration of Imugen and
Immunetics into the Company may not progress as anticipated; decisions by
regulatory authorities, hospitals and other health care institutions,
laboratories, physicians, patients and third party payers that could affect the
Company's business and prospects; as well as our ability to expeditiously and
successfully expand our sales and distribution networks. The risks included
above are not exhaustive. Other factors that could adversely affect our business
and prospects are described under the "Risk Factors" section in our filings with
the Securities and Exchange Commission ("SEC"). Our filings are available for
free by visiting the investor section of our website, www.oxfordimmunotec.com,
or the SEC's website, www.sec.gov.
Investors should give careful consideration to these risks and uncertainties.
Forward-looking statements contained herein are based on current expectations
and assumptions and currently available data and are neither predictions nor
guarantees of future events or performance. You should not place undue reliance
on forward-looking statements contained herein, which speak only as of the date
of this release. We do not undertake to update or revise any forward-looking
statements after they are made, whether as a result of new information, future
events, or otherwise, except as required by applicable law.
CONTACTS:
For Media and Investor Inquiries:
Karen Koski
Head of Strategy and Investor Relations
Oxford Immunotec
Tel: +1 (508) 556-1377
kkoski(at)oxfordimmunotec.com
Mark Klausner
Westwicke Partners
Tel: +1 (443) 213-0501
oxfordimmunotec(at)westwicke.com
Oxford Immunotec Global PLC
Condensed consolidated statements of operations
(unaudited)
Three months ended June 30, Six months ended June 30,
--------------------------------- --------------------------------
(in thousands,
except share
and per share
data) 2017 2016 2017 2016
---------------- ---------------- ---------------- ---------------- ---------------
Revenue
Product $ 10,422 $ 9,293 $ 18,808 $ 17,431
Service 15,698 9,861 28,817 18,833
---------------- ---------------- ---------------- ---------------
Total revenue 26,120 19,154 47,625 36,264
Cost of
revenue
Product 4,094 3,512 7,339 6,805
Service 8,398 5,094 15,650 9,966
---------------- ---------------- ---------------- ---------------
Total cost of
revenue 12,492 8,606 22,989 16,771
---------------- ---------------- ---------------- ---------------
Gross profit 13,628 10,548 24,636 19,493
Operating
expenses:
Research and
development 3,948 3,284 7,753 6,305
Sales and
marketing 10,041 9,391 19,681 17,871
General and
administrative 7,990 5,151 14,866 9,734
Change in fair
value of
contingent
purchase price
consideration (238 ) 57 (2,595 ) 112
Settlement
expense 9,635 - 9,635 -
---------------- ---------------- ---------------- ---------------
Total
operating
expenses 31,376 17,883 49,340 34,022
---------------- ---------------- ---------------- ---------------
Loss from
operations (17,748 ) (7,335 ) (24,704 ) (14,529 )
Other income
(expense):
Interest
expense, net (807 ) (17 ) (1,630 ) (34 )
Foreign
exchange
(losses) gains (547 ) 874 (653 ) 1,237
Other
(expense)
income (122 ) 29 (262 ) (137 )
---------------- ---------------- ---------------- ---------------
Loss before
income taxes (19,224 ) (6,449 ) (27,249 ) (13,463 )
Income tax
benefit
(expense) 2,458 3 2,411 (32 )
---------------- ---------------- ---------------- ---------------
Net loss $ (16,766 ) $ (6,446 ) $ (24,838 ) $ (13,495 )
---------------- ---------------- ---------------- ---------------
Net loss per
share
attributable
to ordinary
shareholders-
basic and
diluted $ (0.74 ) $ (0.29 ) $ (1.10 ) $ (0.60 )
---------------- ---------------- ---------------- ---------------
Weighted-
average shares
used to
compute net
loss
attributable
to ordinary
shareholders-
basic and
diluted 22,805,379 22,351,645 22,670,206 22,318,019
---------------- ---------------- ---------------- ---------------
Reconciliation of net loss to Adjusted EBITDA (1)
(unaudited)
Three months ended June
30, Six months ended June 30,
-------------------------- ---------------------------
(in thousands) 2017 2016 2017 2016
------------------------ ------------- ------------ ------------- -------------
Net loss $ (16,766 ) $ (6,446 ) $ (24,838 ) $ (13,495 )
Income tax expense
(benefit) (2,458 ) (3 ) (2,411 ) 32
Interest expense, net 667 17 1,341 34
Depreciation and
amortization of
intangible assets 990 624 1,993 1,205
Accretion and
amortization of loan
fees 140 - 289 -
------------- ------------ ------------- -------------
EBITDA (17,427 ) (5,808 ) (23,626 ) (12,224 )
Reconciling items:
Share-based
compensation expense 1,434 1,355 2,760 2,459
Unrealized exchange
losses (gains) 319 (896 ) 281 (1,418 )
Change in fair value
of contingent purchase
price consideration (238 ) 57 (2,595 ) 112
Settlement expense 9,635 - 9,635 -
------------- ------------ ------------- -------------
Adjusted EBITDA $ (6,277 ) $ (5,292 ) $ (13,545 ) $ (11,071 )
------------- ------------ ------------- -------------
(
(1) )EBITDA and Adjusted EBITDA are non-GAAP measures that we calculate as net
loss, adjusted for the impact of earnings or charges resulting from matters that
we consider not to be indicative of our ongoing operations. We believe that
these measures provide useful information to investors in understanding and
evaluating our operating results in the same manner as our management and Board
of Directors. Our presentation of these measures is not made in accordance with
U.S. GAAP, and our computation of these measures may vary from others in the
industry. Our use of these measures has limitations as an analytical tool, and
you should not consider it in isolation or as a substitute for analysis of our
results as reported under U.S. GAAP.
The above table presents a reconciliation of net loss, the most comparable U.S.
GAAP measure, to EBITDA and Adjusted EBITDA for each of the periods indicated.
Oxford Immunotec Global PLC
Condensed consolidated balance sheets
(unaudited)
June 30, December 31,
(in thousands, except share and per share data) 2017 2016
-------------------------------------------------- -------------- -------------
Assets
Current assets:
Cash and cash equivalents $ 36,713 $ 59,110
Accounts receivable, net 18,016 13,265
Inventory, net 9,480 7,437
Prepaid expenses and other assets 2,907 2,390
-------------- -------------
Total current assets 67,116 82,202
Restricted cash, non-current 200 200
Property and equipment, net 8,786 7,793
In-process research and development 16,170 16,170
Goodwill 3,967 3,822
Other intangible assets, net 10,410 11,017
Deferred tax asset 6,133 2,630
Other assets 145 178
-------------- -------------
Total assets $ 112,927 $ 124,012
-------------- -------------
Liabilities and shareholders' equity
Current liabilities:
Accounts payable $ 3,874 $ 3,201
Accrued liabilities 15,734 14,282
Settlement liability 2,317 -
Contingent purchase price consideration 880 882
Deferred income 43 41
Current portion of loans payable 87 84
-------------- -------------
Total current liabilities 22,935 18,490
Long-term portion of loans payable 29,670 29,601
Settlement liability 7,472 -
Contingent purchase price consideration - 2,593
Other liabilities 364 364
-------------- -------------
Total liabilities 60,441 51,048
-------------- -------------
Shareholders' equity:
Ordinary shares, £0.006705 nominal value;
36,183,293 shares authorized at June 30, 2017
and
December 31, 2016, and 23,014,032 and
22,635,431 shares issued and outstanding at
June
30, 2017 and December 31, 2016, respectively 247 243
Additional paid-in capital 251,989 249,128
Accumulated deficit (193,494 ) (168,656 )
Accumulated other comprehensive loss (6,256 ) (7,751 )
-------------- -------------
Total shareholders' equity 52,486 72,964
-------------- -------------
Total liabilities and shareholders' equity $ 112,927 $ 124,012
-------------- -------------
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Oxford Immunotec via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Bereitgestellt von Benutzer: hugin
" alt="The Dream Team is back searching for DiamondsDatum: 01.08.2017 - 13:00 Uhr
Sprache: Deutsch
News-ID 554830
Anzahl Zeichen: 26572
contact information:
Town:
Oxfordshire
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 210 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Oxford Immunotec Reports Second Quarter 2017 Financial Results"
steht unter der journalistisch-redaktionellen Verantwortung von
Oxford Immunotec (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
